Have Karooooo Insiders Been Selling Stock?

We wouldn't blame Karooooo Ltd. (NASDAQ:KARO) shareholders if they were a little worried about the fact that Isaias Jose Calisto, the Founder recently netted about US$75m selling shares at an average price of US$50.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.6%.

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The Last 12 Months Of Insider Transactions At Karooooo

In fact, the recent sale by Isaias Jose Calisto was the biggest sale of Karooooo shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$47.28. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Karooooo

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Insider Ownership Of Karooooo

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Karooooo insiders own 73% of the company, worth about US$1.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Karooooo Tell Us?

An insider hasn't bought Karooooo stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Karooooo is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Karooooo you should be aware of.

But note: Karooooo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.